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Comparing quarterly filings, fund breakdowns and more...

After the 2008 financial crisis and the subsequent regulatory changes, Business Development Companies (BDCs) skyrocketed in popularity, filling the funding gap in middle market companies. BDCs are closed-end funds that mostly invest in private, growing companies and, increasingly, larger later stage corporations.  

BDCs are required to file quarterly reports to the SEC under the Investment Company Act of 1940. Aggregating the data from these reports is tedious, time-consuming, and lacks standardization. AdvantageData’s BDC Product gives investment professionals access to aggregated and standardized data (current and historical), allowing users to easily analyze data relevant to their firm's needs.

The Week Of Nothing Much

We’ve been writing these Market Recaps for more weeks than a shark has teeth and we’re hard pressed to remember 5 consecutive days as uneventful as these have been.

As the BDC Reporter has been saying in the preamble of our articles of late, there is very little new to report.

We counted just 4 stories on our Daily News Table and one Stock Watch alert  (as OFS hit a new 52 Week Low) during the week. The week before ? 18 different items.

The same applies to BDC common stock prices, which barely shifted over this, admittedly brief, period between January 19 and 26. 

BDC COMMON STOCKS

Holiday Gift

In a holiday-shortened week, the BDC Sector did pretty much one thing: go up. To $21.26.

For which investors will be thankful.

After all, at the beginning of the month the UBS Traded Note with the ticker BDCS was at a YTD Low of $20.43.

That was (10%) down in the period and (15%) off the YTD and multiple year high of $23.87 on March 31, 2017.

Fireworks

• Week Two of BDC Earnings Season was a wild one, with much volatility, a fair number of surprises and much more.
• The UBS Exchange Traded Note with the ticker BDCS – which we sometimes use as our measuring stick – was up.
• Then down, then up.
• BDCS ended up at $20.83, from $20.70, or 0.6%.
• That’s now 2.8% above the lowest price of the year.